Professional Tax in Uttar Pradesh

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India imposed the professional tax in 1949, and the state government collects it from salaried and self-employed individuals who generate income independently. The tax deduction percentage varies based on state government regulations in India and depends on individuals’ salaries. It is collected monthly in India, and the deduction rate for professional tax and collection methods differs from state to state in India.

Uttar Pradesh Professional Tax Act

The state’s sales tax department in Uttar Pradesh collects professional tax online. Self-employed individuals and salaried professionals can pay their professional taxes through the department’s official website. The Uttar Pradesh State Tax Department regulates the implementation and function of business tax as per the Employment Act of 1975.

Is Professional Tax Applicable in Uttar Pradesh?

Professional tax applies to doctors, lawyers, teachers, etc. It applies to all salaried and self-employed individuals. The eligibility criteria to pay corporate tax varies according to state norms. Some states exempt from imposing professional tax in India are Arunachal Pradesh, Rajasthan, and Haryana. In Uttar Pradesh, individuals earning a monthly income of more than Rs.7,500/- must pay business tax. Individuals with monthly income less than or equal to Rs.7,500/- are exempted from paying professional tax in Uttar Pradesh.

Professional Tax Slab in Uttar Pradesh 2023-24

The state government frames the tax slab based on the income earned by the individual. Employers play a mediator role in collecting professional taxes. For salaried people, the employer pays the tax on behalf of the employees. The tax amount is deducted from their salary, and it is mentioned in Form-16 is a TDS (Tax Deducted as Source) certificate provided by the employer. The tax slab varies from one individual to another. Thus, the deduction range is based on the income range. The professional tax slab in Uttar Pradesh is mentioned below.

Sr No.	Monthly Gross Salary	Amount Payable as Professional Tax
1	Up to ₹7,500 Per Month	Nil
2	₹7,501 to ₹10,000	₹175 per Month
3	Above ₹10,000	₹2,500 per Annum. It Can Be Paid either Way. ₹200 per Month Except for February ₹300 for February.

How Do You Pay Professional Tax in Uttar Pradesh?

The prior action to pay corporate income tax is to obtain a professional tax registration in Uttar Pradesh from the liable authority. Thus, Form 1 needs to be filled out and duly signed by the company’s concerned person. After that, a professional tax registration number must be given to the employer to proceed with the tax payment process.

Who Collects Professional Tax in Uttar Pradesh?

The state’s commercial tax department collects the professionalized individuals whose employer pays the corporate tax by deducting the tax based on their salary range. For that purpose, the employer or the company needs to register itself on the website of the state sales tax department. The employer also has to pay the government professional tax. In the case of self-employed or freelancing individuals, they are supposed to register on the website by themself and by the tax based on their income range.

Uttar Pradesh Professional Tax Late Payment Penalty

Like other taxes, professional taxes have penalties. If salaried professionals or self-employed individuals fail to pay on time or do not pay corporate tax for a long time, the state’s sales tax department should fine them. The penalty amount varies according to state norms.

Uttar Pradesh Professional Tax Exemption

Some exceptions include paying professional tax in Uttar Pradesh based on the law and government acts. The exceptions include

Professionals who have children with a mental or physical disability.
Armed services individuals (Army Act 1950, Navy Act 1957, and Air Force Act 1950.)
Badli workers (employees of textile industries).
Employees who have permanent physical disabilities, including blindness.
Persons above age 65.
Women are employed as agents for Mahila Pradhan Kshetriya Bachat Yojana or as directors of small savings.

Conclusion

Professional tax is applicable in around 17 states in India. Uttar Pradesh is a state that collects professional tax through the commercial tax department. As a working individual or a self-employed person, everyone has to pay professional tax in Uttar Pradesh, which levies professional tax. The payable tax amount and eligibility vary according to state norms. If you are a working professional of UP, earn more than Rs. 7500, and fall under the eligibility criteria, you must pay the tax on the stipulated due date. Individuals who fall under the exempted category need not pay the tax.

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Frequently Asked Questions

1. What Is the Maximum Professional Tax Amount in Uttar Pradesh?

The payable professional tax amount varies according to individuals’ salary range or income. The maximum professional tax amount the Uttar Pradesh state government collects is Rs.7,500/-.

2. How Can I Calculate My Professional Tax in Uttar Pradesh?

Before calculating professional tax, one must check the corporate tax eligibility criteria. Many online calculators for professional tax are available today. It is calculated from the gross monthly salary.

3. How Much Is Professional Tax Levied?

In India, professional tax is collected by the state government. There are different norms, but the maximum taxable amount is generally Rs. 2500/-.

4. Is It Compulsory to Pay Professional Tax in Uttar Pradesh?

Yes, a working professional who comes under the eligibility criteria of Uttar Pradesh for professional tax should pay the desired amount unless the individual meets with penalties.